1. Moscow, 15 Oct 201314 IRSF EBS-Moscow Exchange-NFEA1 Update of Ruble markets: rocketing off-shore Dmitry Piskulov, Ph.D. (econ.) Chairman of NFEA Board & Committee for Professionalism, Ethics and Education,

2. Moscow, 15 Oct 201314 IRSF EBS-Moscow Exchange- NFEA 2 Мarket volumes statistics Sources: Central Bank of Russia (monthly Survey of Foreign Exchange and Derivatives Market Activity) UK Bank of England FX Joint Standing Committee (Semi-annual FX turnover surveys) Bank for International Settlements (BIS) NFEA Annual Survey of Bank Derivatives (2008-2012)

3. Average Daily Turnover of global FX market in 1986-2010 U$ Bln.198619921998200420102013 Net turnover $355$820$1,527$1,934$3,971$3,971$5,345 FX spot2123945686311,4882,046 Forwards 143 58128209475680 FX swaps3247349541,7592,228 FX options CCY swaps n.a. 87 10 119 21 207 43 337 54 Moscow, 15 Oct 201314 IRSF EBS-Moscow Exchange-NFEA3

4. Recent trends in RUB markets New financial megaregulator created: Bank of Russia Service for Financial Markets (01Sep13) Reform of CBR RUB refinancing mechanism (13 Sep 2013) –Simplification of refinancing instruments –Introduction of Key Rate (5.5%) Stable (sometimes) declining RUB on-shore interbank volumes Counterparty risk in capital adequacy Sharp growth in off-shore RUB Moscow, 15 Oct 201314 IRSF EBS-Moscow Exchange- NFEA 4

5. CCYshares in global FX 2007-2013 RankCurrencyShare % 2007Share % 2010Share % 2013 1USD (US Dollar)86.384.987.0 2EUR (Euro)37.039.133.4 3JPY (Japanese yen)16.519.023.0 4GBP (Pound sterling)15.012.911.8 5AUD (Australian dollar)6.77.68.6 6CHF (Swiss frank)6.86.45.2 7CAD (Canadian dollar)4.25.34.6 8MXN (Mexican peso)1.3 2.5 9CNY, CNH0.5 (22-th)0.9 (17-th)2.2 ………………………… 12RUB (Russian Ruble)0.8 (17-th)0.9 (16-th)1.6 19BRL (Braz. real)0.50.71.1 20INR (Indian rupee)0.70.91.0 5

6. Largest on-shore FX mkt 2007,2013 Ra nk Country2007 ADT, $ bln. 2007 Share global % 2013 ADT, $ bln. 2013 Share global % 1UK1,35934.1 %2,72640.9% 2USA66416.6 %1,26318.2% 3Singapore2315.8 %3835.7% 4Japan2386.0 %3745.6% 5Hong Kong1754.4 %2744.1% 6Switzerland2426.1 %2163.2% 7France1203.0 %1902.8% 8Australia1704.2 %1822.7% 9Netherlands!250.6 %1121.7% 10Germany992.5 %1111.7% 11Denmark862.2 %1031.5% 12Canada601.5 %651.0% 13Russia501.3 %610.9% 6

7. Largest USD/CCY Pairs in global FX 20102013 EUR/USD28%24.1% USD/JPY14%18.3% GBP/USD9%8.8% USD/AUD6%6.8% USD/others11.2%4.0% USD/CAD5%3.7% USD/CHF4%3.4% USD/RUB…1.5% (11-th) 14 IRSF EBS-Moscow Exchange-NFEA7Moscow, 15 Oct 2013

8. 14 IRSF EBS-Moscow Exchange-NFEA8 FX spot on-shore interbank market in 2008-2012 Russian on-shore FX spot ADT: methodology of BIS MonthFX spot market ADTMOEX Jul 2008$ 104.2 bln.$10.5 bln. Oct 2009$ 54.2 bln.$10.6 bln Oct 2010$ 66.7 bln.$11.3 bln Oct 2011$ 74.8 bln $13.9 bln. Jan-Dec 2012$ 56-74 bln $16.6 bln. Jan-Aug 2013$ 43-61 bln.12-19 bln.

9. 14 IRSF EBS-Moscow Exchange-NFEA 9 On-shore vs Global RUB FX market in April 2013 Domestic OTC market average daily turnover (ADT) RUB On-shore (CBR data) RUB Global total (BIS data) FX spot$22.9$ 37.0 Outright forwards$0.6$ 9.0 FX swaps$34.6$ 37.0 FX options$0.34$3.0 Total:$58.5$85.0

10. Russian FX market 2008-13 Moscow, 10 Sep 2013"Derivatives in Russia 2013" NFEA-EBRD-ISDA Conference10

11. RUB markets outside Russia Trading volumes(ADT) reported off-shore: FX instruments: $ 35-37 bln. Money market instruments: $ 2.0-3.0 bln. Interest rate derivatives: $ 0.3-0.5 bln. RUB bonds trading: $ 1-2 bln. Total (FX,MM,Derivat.): $ 40-45 bln. Moscow, 15 Oct 20131114 IRSF EBS-Moscow Exchange-NFEA

12. Volumes of USD/RUB FX instruments in London InstrumentOct 2009Apr 2011Oct 2012Apr 13 FX spot$1.9 bln$5.5 bln$8.5 bln$14.3 NDF$1.2 bln$2.2 bln$3.4 bln$4.2 Outrights$0.3 bln.$0.4 bln.$2.4 bln$5.1 FX swaps$4.3 bln$4.6 bln$5.4 bln$8.7 Ccy swaps$0.1 bln$0.4 bln$0.3 bln$0.4 FX options$1.2 bln$0.8 bln$2.0 bln$1.7 Total:$9.0 bln$13.9 bln$22.0 bln$34.4 bln. 12 Bank of England UK FXJSC: ADT in 2008-13

13. Russian OTC FX&IR derivatives ADT bln.US$FX derivativesIR derivatives April 2012$4.8 bln.$270 mln. July 2012$4.8 bln$96 mln. Oct 2012$4.8 bln$186 mln. Jan 2013$4.1 bln.$231 mln. Apr 2013$6.1 bln.$250 mln. July 2013$4.4 bln.$207 mln. Aug 2013$5.0 bln.n.a FX derivatives: FX swaps(longer than spot), Forward outrights + NDF, FX options IR derivatives: Cross currency swaps, Interest rate swaps, OIS 13

14. Interest rate derivatives Very small Daily volumes (ADT), tend to rise in 2013, bln.$ 14

15. On-shore exchange traded derivativ. ADT, US$ bln. Jan 2013Apr 2013Jun 2013 Equity futures 2,754,304,57 FX futures 2,062,762,83 Interest rate futures 0,0080,0220,066 -on short term rates 0,0000040,0000330,00077 - on long term (OFZ) 0,0080,0220,065 Options 0,350,540,62 Commodity futures 0,130,220,20 TOTAL 5,307,858,29 Source: Moscow Exchange, St.Petersburg Exchange 15

16. Today NFEA indices family Since 2005 Since Jan 2010 Since Sep 2010, together with CBR Since April 2011 Since Jan 2013 Moscow, 15 Oct 2013"Derivatives in Russia 2013" NFEA-EBRD-ISDA Conference16

17. Moscow, 15 Oct 2013 14 IRSF EBS-Moscow Exchange-NFEA17 About NFEA Established: October 1999 in Moscow Membership: institutional (local and global banks and brokers) operating in Russian spot/forward foreign exchange, money markets and derivatives; Management: the Board (28 market practitioners), 4 co-chairmen, 3 Committees (on Market Indices; for Professionalism, Ethics & Education; on Legal Affairs) Projects up to date: –1999-2001, 2006: Elaboration of Standards (Code of Conduct and Rules to Conduct Operations (Committee for Professionalism, Ethics & Education), –Market indices: MosPrime Rate (2005, RUB money market reference rate), NFEA FX SWAP RATE – new index for USD/RUB and EUR/RUB forwards -Standard Documentation for Russian OTC derivative transactions (Russian ISDA Agreement) – completed in 2009, new version in 2011 (approved FFMS) -RUONIA – Russian analogue of EONIA, SONIA (since Sept 2010) -ROISFIX – OIS interest rates index (since April 2012) -CLS Bank: inclusion of Rub into CLS clearable currencies (since end 2011) International cooperation, partners and working contacts: -EBRD (MosPrime rate, joint conferences) -ISDA (inclusion of MosPrime rate into ISDA definitions 2006) -ACI-The Financial Markets Association

18. Moscow, 15 Oct 201314 IRSF EBS-Moscow Exchange-NFEA18 Contact Details 12 Bolshaya Nikitskaya st, Moscow, 125009, Russia, Tel.+7 (495) 629-9510, 629-9709 www.nva.ruwww.nva.ru, www.nfea.ru; www.ruonia.ruwww.nfea.ruwww.ruonia.ru @ The Copyright National Foreign Exchange Association, 2012 All rights reserved. Any reproduction is only permitted with prior consent of NFEA.